LXI REIT PLC Acquisition (8544D)
February 05 2018 - 1:00AM
UK Regulatory
TIDMLXI
RNS Number : 8544D
LXI REIT PLC
05 February 2018
5 February 2018
LXi REIT plc
(the "Company" or "LXi REIT")
GBP3.4 MILLION ACQUISITION OF STOBART BIOMASS STORAGE AND
PROCESSING PLANT, ROTHERHAM, YORKSHIRE
The Board of LXi REIT plc (ticker: LXI) is pleased to announce
that the Company has acquired the freehold interest in the Stobart
biomass storage and processing plant in Rotherham, Yorkshire (the
"Property") in a sale and leaseback transaction. The purchase price
for the Property is GBP3.4 million, reflecting a net initial yield
of 6.2% (net of acquisition costs to the Company).
The Property has been acquired with a new 20-year lease in place
and is fully let to Stobart Biomass Products Limited and guaranteed
by its parent, Stobart Group Ltd ("Stobart Group"), a FTSE 250
listed company and one of the UK's leading infrastructure and
support service businesses operating in the energy, aviation and
rail sectors.
The new 20-year lease, which has no tenant break right, benefits
from five yearly Retail Prices Index linked rent reviews (collared
at 1.5% per annum and capped at 4% per annum).
The Property extends to a total of six acres and will be used by
Stobart Group as a storage and processing site to supply the nearby
41 megawatt Templeborough Biomass Power Plant with biomass timber
waste. The Property is located close to the centre of Rotherham and
has good access to the national motorway network, with the M1 and
M18 in close proximity.
The acquisition is being funded using the proceeds of the
Company's new 11.5-year loan facility secured from Scottish Widows
in December 2017 at a fixed rate of 2.85% per annum.
John White, Partner of LXi REIT Advisors Limited, commented:
"We are pleased to have acquired, off-market, the Stobart
biomass storage and processing facility, which provides the Company
with an attractive net initial yield and secure, long-dated,
inflation-linked income stream. The property is underpinned by a
strong industrial location and residual value and further
diversifies the Company's tenant and sector exposure."
The Company's LEI is: 2138008YZGXOKAXQVI45
FOR FURTHER INFORMATION, PLEASE CONTACT:
LXI REIT Advisors Limited Via Newgate Communications
John White (Partner, Fund
Manager)
Simon Lee (Partner, Fund Manager)
----------------------------------- ---------------------------------
Peel Hunt LLP Tel: 020 7418 8900
Luke Simpson
----------------------------------- ---------------------------------
Newgate Communications (PR Tel: 020 7680 6550
Adviser) Email: lxireit@newgatecomms.com
James Benjamin
Anna Geffert
----------------------------------- ---------------------------------
NOTES:
The Company invests in UK commercial property assets let, or
pre-let, on very long (typically 20 to 30 years to expiry or first
break), inflation-linked leases to a wide range of strong tenant
covenants across a diverse range of property sectors.
The Company may invest in fixed-price forward funded
developments, provided they are pre-let to an acceptable tenant and
full planning permission is in place. The Company will not
undertake any direct development activity nor assume direct
development risk.
The Company is targeting a minimum annual dividend of 5 pence
per ordinary share, starting from the financial period commencing 1
April 2018, with the potential to grow the dividend in absolute
terms through upward-only inflation-protected long-term lease
agreements, and is targeting a net total shareholder return of 8
per cent. plus per annum over the medium term(1) .
The Company, a real estate investment trust ("REIT")
incorporated in England and Wales, is listed on the premium listing
segment of the Official List of the UK Listing Authority and was
admitted to trading on the main market for listed securities of the
London Stock Exchange in February 2017.
Further information on the Company is available at
www.lxireit.com
Note 1: these are targets only and not a profit forecast and
there can be no assurance that they will be met.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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